Radian Group Goes Red
Radian Group (NYS: RDN) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Radian Group whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Radian Group chalked up revenue of $180.4 million. The five analysts polled by S&P Capital IQ predicted sales of $205.6 million on the same basis. GAAP reported sales were 70% lower than the prior-year quarter's $604.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$1.44. The five earnings estimates compiled by S&P Capital IQ averaged -$0.55 per share. GAAP EPS were -$1.28 for Q1 compared to $0.77 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -63.1%, 9,010 basis points worse than the prior-year quarter. Operating margin was -90.9%, 11,020 basis points worse than the prior-year quarter. Net margin was -93.8%, 11,080 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $216.4 million. On the bottom line, the average EPS estimate is -$0.46.
Next year's average estimate for revenue is $856.6 million. The average EPS estimate is -$1.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 405 members rating the stock outperform and 181 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Radian Group a green thumbs-up, and 69 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Radian Group is hold, with an average price target of $5.50.
Over the decades, small-cap stocks like Radian Group have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Radian Group to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.